Ashland Global Holdings Inc (ASH)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 300,000 | 417,000 | 646,000 | 210,000 | 454,000 |
| Short-term investments | US$ in thousands | 73,000 | 77,000 | 61,000 | 37,000 | 30,000 |
| Total current liabilities | US$ in thousands | 490,000 | 456,000 | 553,000 | 934,000 | 813,000 |
| Cash ratio | 0.76 | 1.08 | 1.28 | 0.26 | 0.60 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($300,000K
+ $73,000K)
÷ $490,000K
= 0.76
The cash ratio of Ashland Global Holdings Inc has varied over the past five years, ranging from 0.26 to 1.28. A higher cash ratio indicates a company has a greater ability to cover its short-term liabilities using its cash and cash equivalents, which is a positive sign of liquidity. In 2022, the company had a relatively high cash ratio of 1.28, suggesting a strong ability to meet its short-term obligations with its cash resources. However, there was a notable decrease in the cash ratio in 2023 to 1.08 and a further decline in 2024 to 0.76. This downward trend could indicate a potential deterioration in the company's liquidity position over the past two years. It is important for Ashland Global Holdings Inc to monitor its cash position closely to ensure it can meet its short-term financial commitments effectively.
Peer comparison
Sep 30, 2024